Hormone Beefs, Chloridric Chicken and International Trade: Can Scientific Uncertainty be an Informational Barrier to Trade?
Date
01.01.2000
01.01.2000
Authors
Giacomo Calzolari
JEL Code
D8,F1,L1
D8,F1,L1
Keywords:
International trade,lobbies,information,scientific uncertainty
International trade,lobbies,information,scientific uncertainty
Publisher
Economy and Society
Economy and Society
Editor
Gianmarco I.P. Ottaviano
Gianmarco I.P. Ottaviano
We study international trade of innovative goods subject to scientific uncertainty on consumers’ health effects. Trade of these goods is often at the centre of international disputes. We show that a new trade protectionism may arise because of the scientific uncertainty. A free riding effect is individuated implying a more conservative behaviour by countries. We also study the informative role played by producers (lobbies) in revealing valuable information. We find that producers reveal more information when the effects of harmful consumption on health are long lasting. Our results are robust to several extensions (e.g. product labelling, firm liability).